Behind on Property Taxes in North Dakota?

Back Taxes in North Dakota: Your Options

This page explains what happens in North Dakota when property taxes on land go unpaid. It covers the due date, the early payment discount, penalties, 12 percent interest, the notice of foreclosure of tax lien and the tax deed to the county.

In North Dakota the county forecloses its own tax lien, takes a tax deed and then sells the land at auction. You can pay or sell until the foreclosure date. This page is general information, not legal or tax advice. For your own parcel, ask your county treasurer or auditor.

When North Dakota property taxes are due and go delinquent

Real estate taxes are due January 1 after the year they are levied. Paying the full year by February 15 earns a 5 percent discount (N.D.C.C. 57-20-09). The first installment becomes delinquent after March 1, and the second installment after October 15 (N.D.C.C. 57-20-01).

Penalties and interest

A late first installment gets a 3 percent penalty, with 3 percent more on May 1, July 1 and October 15. A late second installment gets a 6 percent penalty (N.D.C.C. 57-20-01).

Starting January 1 of the following year, simple interest of 12 percent a year is added (N.D.C.C. 57-20-26).

What the county does next: foreclosure of the tax lien

Each November, the county treasurer mails a notice that the taxes are delinquent and are a lien on the land (N.D.C.C. 57-20-26).

By June 1, the county auditor gives notice of foreclosure of tax lien for property where two or more years have passed since the tax became due. Unless the amount is paid, the lien is foreclosed on October 1 after the notice, and a tax deed is issued to the county (N.D.C.C. 57-28-01 to 57-28-05). Foreclosure costs of $50 or the actual cost, whichever is higher, are added (N.D.C.C. 57-28-04).

Redemption

You can stop the foreclosure by paying the taxes, special assessments, penalties, interest and foreclosure costs on or before October 1 of the foreclosure year (N.D.C.C. 57-28-05). Ask the county for the exact amount.

County sale and excess proceeds

The county sells tax deed land at an annual sale starting on the third Tuesday of November, for at least the minimum price the county commissioners set (N.D.C.C. 57-28-10 to 57-28-15). If the sale brings more than the taxes, assessments, penalties, interest and costs, the county holds the excess for 90 days. The owner of record who files an undisputed claim in that time is paid. Disputed claims go to district court, and unclaimed money goes to the unclaimed property administrator (N.D.C.C. 57-28-20).

Your options if you are behind

Your best choice depends on the land, the amount owed and how close October 1 is.

• Pay the full amount owed, with penalties, interest and costs, before the next step in the process.
• Ask the tax office whether it offers a payment plan, and get the terms in writing.
• Sell the land before the deadline. The back taxes are paid from the sale at closing.
• If the land was inherited, gather the death certificate and any will or probate papers early, because a sale needs someone with authority to sign.
• If the numbers are large or a deadline is close, talk to a real estate attorney.

Selling land with back taxes in North Dakota

You can sell land with delinquent taxes before the October 1 foreclosure date. At closing, the title company gets a payoff from the county treasurer and pays it from the sale price. The buyer gets title free of the tax lien.

EasyLotBuyer buys vacant land in North Dakota for cash, including lots with back taxes, liens, title issues or no road access, and land from heirs and estates. We make a cash offer within 24 hours, charge no fees or commissions, and pay the closing costs. We can close in as few as 7 days. Back taxes are paid at closing from the sale.

Where to check your tax status

Your county treasurer has the tax statements and payoffs, and the county auditor sends foreclosure notices. The Office of State Tax Commissioner has state property tax information.